CMON (01792.HK): Proposes non-underwritten rights issue of 185,760,000 shares at HKD 0.81 per share, raising up to approximately HKD 150.5 million
NewTimeSpace News: On 11 August 2026, CMON Limited (stock code: 01792) published a circular for a proposed rights issue, proposing to issue 185,760,000 rights shares at a subscription price of HKD 0.81 per rights share on a non-underwritten basis, on the basis of three rights shares for every one existing share held by eligible shareholders on the record date, raising up to approximately HKD 150.5 million (before expenses). The rights issue is not underwritten; if not fully subscribed, the unsubscribed rights shares will be placed to independent placees on a best-effort basis under the placing, unplaced unsubscribed rights shares will not be issued and the scale of the rights issue will be reduced accordingly; there is no minimum fundraising amount for the rights issue.
The subscription price of HKD 0.81 per share represents a discount of approximately 14.74% to the closing price of HKD 0.950 per existing share quoted on the Stock Exchange on the last trading day (17 June 2026), and a discount of approximately 6.25% to the theoretical ex-rights price of approximately HKD 0.864 per share; after deducting rights issue expenses, the estimated net price per rights share is approximately HKD 0.787. The estimated net proceeds of the rights issue of approximately HKD 146.2 million are intended to be used for general working capital for operations (approximately 40%, part of which for employee costs, selling and distribution expenses and general administrative expenses for approximately 12 months), repayment of debts and settlement of outstanding liabilities (approximately 20%, including repayment of approximately USD 2.46 million due to a director and unsecured advances from employees of approximately USD 385,000), potential future acquisitions of controlling interests in IT gaming industry companies strategically related to the Group's business (approximately 15%) and expansion of the Group's business in existing and new markets (approximately 25%).
The Company is principally engaged in the design, development and sale of board games, miniature wargames and leisure products, and considers that digital transformation is necessary to keep pace with the gaming industry and expand the Group's revenue streams. The announcement disclosed that the Company's cash and bank balances were only approximately USD 430,000 (approximately HKD 3,358,000) as of 31 December 2025, and approximately USD 368,000 (approximately HKD 2.9 million) as of the latest practicable date, sufficient for less than one month of daily operating expenses; the Group's standard operating cash flow is currently negative, and equity financing through the rights issue is therefore the most viable strategic method of recapitalising the Group's capital base, avoiding aggravating its debt distress while providing all eligible shareholders with an equal opportunity to participate and protecting their equity from dilution. The circular contains details of the rights issue, with dealings in the rights shares in nil-paid form expected to take place from 13 August to 20 August 2026.
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